Saturday, November 7, 2015

Week Ending Nov 7

Week Ending Nov 7

What a wild week that was, till Thursday I was up almost 1600$ in profits, went into Friday with 2 Iron Condors on DATA and TRIP , wanted to play another Iron Condor on SWKS but it didnt fill.

DATA was up almost 22% in morning trading setting up the upside towards a major loss as the short 102C was almost immediately ITM, threatening my long 105C. On paper I was down almost 1200$ which would have wiped out most of my profit for the week.

So heres what I did I searched for high IV stocks, didnt find too many at short notice expiring on Friday so decided on chasing the ones that had just announced, I sold Bear calls, including 115/117 on NFLX, chased DATA as well with 104/106, 105/107. Now incidentally I forgot that i had a long 105C position as part of my Iron Condors upper long wing. In any case this almost washed away 1k of my potential loss on the 102C DATA position.

Around mid morning all the short Calls on DATA were ITM, 102C, 104C and 105C, but I knew that a retreat later in the data was assured. Remember the stock went up 22% from 84 to around 105, therefore you have to factor in profit taking and institutional selling.

In anycase at around 2pm CST I started planning my exit, as expected the stock started to retreat from a morning high of 105, now it was hovering around 103 , that would leave an intrinsic value of 1$ on the 102C.

Ultimately I closed the position for a 750$ loss but made almost all back with the bear calls.
My final weak trade came from another stock TRIP, this one was hammered in the news , with numerous downgrades after disastrous earnings.

Earlier in the week I passed on FEYE because of the same reason too much downside risk, and as expected FEYE collapsed almost 20%. Now on a 100$ stock that would allow a wide spread but on a 30$ stock it doesnt especially when the IV doesnt award a fruitful premium for it.

Now I had an IC on TRIP with the lower wing at 74/72 , after earnings the stock touched 74 , I assumed doom and closed the position for double the sold price thereby losing around 300$.

Unfortunately for me the price immediately skyrocketed and 74 became resistance.

I needn't have capitulated as the stock never threatened 74 at all for the whole day.

Notable plays this week, strangles on KORS, MBLY , WFM all winners.
Synthetic combo on CYH loser because of an incorrect leg which would have been a loser even if it had been placed correctly.
Iron Condors on FB TRIP and DATA
Verticals on FIT, NFLX DATA.

Net 1000$ profit for the week.